The State Bank said it is studying the proposal to participate in restructuring SCB from a number of investors, to submit to the Government a restructuring plan for this bank.
The report of the Ministry of Planning and Investment on economic restructuring said that in the banking sector, over the past two years the State Bank has promoted the restructuring of the banking system.
Regarding banks and credit institutions under special control, including Saigon Bank (SCB), the State Bank has reported to the Prime Minister on the handling policy. Accordingly, the handling direction is given based on the overall assessment of the current situation and the proposed restructuring policy of SCB and the Special Control Board of this bank.
"The State Bank is studying the proposal to participate in restructuring SCB from a number of investors to soon submit to the Government a plan to restructure this bank according to regulations," the report stated.
Currently, 5 banks are under special control, including CBBank, OceanBank, GPBank, DongABank and SCB. Special control is a professional measure to strictly control and limit negative impacts on banks and the credit institution system in general. In the history of the banking industry, there have been many banks that have been put under special control but have since recovered and developed strongly.
SCB is a bank that has been under special control since October 2022, after many branches and transaction offices of the bank recorded a situation where people came to withdraw money en masse.
Customers transact at an SCB transaction office in Ho Chi Minh City. Photo: SCB
For the remaining 4 banks (CBBank, OceanBank, GP Bank and DongABank), the State Bank has submitted and received approval from competent authorities for the compulsory transfer policy. Currently, the authorities are reviewing and preparing to approve the restructuring plan for these banks according to the prescribed procedures.
In fact, the restructuring of weak banks is behind schedule. Explaining this, the Government once said that finding and negotiating with commercial banks that are qualified to receive compulsory transfers (weak financial capacity, management, and experience in restructuring credit institutions) is difficult as it depends largely on the voluntary participation of banks. Banks also need time to convince shareholders, especially major shareholders and foreign strategic shareholders, to agree to participate in compulsory transfers.
In mid-December 2023, meeting with leaders of Mizuho Bank - one of the three largest banks in Japan - Prime Minister Pham Minh Chinh asked them to participate in restructuring weak banks in Vietnam.
According to the assessment of the Ministry of Planning and Investment, state-owned commercial banks continue to play a leading role in the credit system in terms of capital scale, assets, credit quality control and bad debt handling. Banks are consolidating and comprehensively rectifying their finances, governance and operations to improve business efficiency and competitiveness, according to the report.
Source link
Comment (0)